Are collections lowering your credit score? If you have a collections entry from Designed Receivable Solutions on your credit report, you can probably attribute it to a missed payment.
Late payments eventually go into collections, which can be detrimental to your credit.
In addition to a lower credit score, you could also face irritating phone calls and letters from the agency.
So if you’re ready to get DRSI off your report and stop their communications with you, the guide below has the advice you need.
About Designed Receivable Solutions
While debt collectors may seem scammy with their frequent phone calls and letters, Designed Receivable Solutions, Incorporated is a legitimate third-party debt collection agency.
DRSI got its start in 2001, founded and headquartered in Southern California.
The agency primarily collects on debt for businesses in California and Arizona, but they are active nationwide.
The agency focuses on medical debt. It works with both small local healthcare providers and large hospitals.
If you fell behind on your healthcare payments or forgot about an outstanding balance on an old account, it may be turned over to DRSI.
The agency may buy ownership of debts for pennies on the dollar. Or they may be paid a service fee for helping your medical provider to collect your debt.
When that happens, the agency can call and write to you regularly. They’ll also report your late payment to the bureau(s), which will result in a collections entry added to your report.
Collections entries may drop your score by a few points, or by dozens. It depends on your other credit factors and the extent of your collections-stage debts.
At any rate, collections entries stay on your report for a total of 7 years, regardless of whether you pay them or not.
That’s why it’s crucial to follow the steps below to get them off your report.
If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.
How to Deal with Designed Receivable Solutions
As a collections agency, DRSI is no stranger to consumer complaints.
Both the Better Business Bureau and Consumer Financial Protection Bureau have closed out complaints against the agency. They have a handful of litigation cases against them as well.
Most often, consumers complain about debt collectors’ pushy collection techniques, erroneous reporting, and inadequate response to debt validation requests.
This law sets the bar for how debt collectors contact you and report your debts, among other guidelines, it states agencies must:
- Contact you between 8 a.m. and 9 p.m.
- Contact you and only you about your debt
- Avoid calling you at work at your request
It also prohibits them from threats of unlawful action against you or the use of abusive or inappropriate language.
The law also lets you choose the method of communication with agencies like DRSI.
We suggest you contact the agency to let them know you are aware of your rights under the FDCPA. Ask them to only communicate in writing going forward.
That way, you’ll have clear evidence of every interaction.
This documentation gets the agency off your credit report easier and helps out if you run into any legal issues with them.
3 Ways to Remove Designed Receivable Solutions from Your Credit Report
While you might be tempted to put issues with DRSI on the back burner, don’t. The longer you let the entry stay on your report, the worse damage it may cause.
With that in mind, here are three tips to confront the agency and get their collections entry off your credit report.
1. Send DRSI a Debt Validation Letter
A simple debt validation letter could be the solution to all your collections problems.
Thanks to the FDCPA, you get one month to dispute shady collections entries on your report.
To explain, all you need to do is mail in a letter that requests validation of a debt. But do this within 30 days of its addition to your credit report.
The agency should respond and provide details that confirm the debt’s validity.
If they can’t furnish you with adequate proof, the entry will be removed from your report and they will cease communications.
Don’t assume this strategy won’t work for you if you do owe money to DRSI.
In many cases, third-party agencies don’t have the records they need to validate debts.
That means your collections account could potentially be forgiven without you paying a penny.
It’s definitely worth a try, whether your debt is legit or you’re worried there’s been a mistake.
Just remember to move quickly since there is a cut-off for debt validation.
Designed Receivable Solutions
10833 Valley View Street #415
Cypress, CA 90630
2. Negotiate a Payment
If debt validation doesn’t get DRSI’s entry off your report, you should negotiate a pay-for-delete agreement.
Pay off your balance. And that might eliminate the daily stress of a collection agency’s calls and letters, but it won’t help your credit.
Because the agency must consent to report your payment to the credit bureaus. As a result, this guarantees the removal of the entry.
Reminder: You need to arrange an agreement in writing as a phone conversation doesn’t provide any concrete guarantees.
Send a letter by certified mail and offer to make a partial payment in exchange for the deletion of the entry from your credit report.
Since collection agencies purchase debts at such a low rate, they’re often eager to make these sorts of agreements as they are still profitable.
Start your negotiations at around 50% and see what happens.
Once you make a payment, be sure to monitor your credit closely to ensure the entry gets removed. Because your reports should be updated within about 30 days of your payment posting.
However, your credit reports may still show the entry after you’ve met the terms of your agreement. If so, contact DRSI to make sure they uphold their end of the bargain.
3. Hire a Credit Repair Company
Facing a debt collector like Designed Receivable Solutions can be downright frustrating, especially when you’re dealing with burdensome medical debts.
If you feel overwhelmed, you could benefit from a consultation with a credit repair company.
For instance, credit repair companies help individuals like you get healthcare collections off their reports every day.
They’ll take care of the heavy lifting, seeking debt validation, negotiating payments, and keeping the collections agency in line.
So if you simply don’t want to deal with the agency directly, a credit repair company is your go-to.
Meanwhile, more than dealing with stressful collections calls, they can help you confront some serious credit problems, such as:
- Hard inquiries
- Identity fraud
To conclude, you’re probably tired of seeing your credit suffer from late payments. So consider working with one of the best credit repair companies or using the tips above to get your credit score back on top.